Hello again traders, on Sunday I looked at NZDUSD in my weekend forex market preview and showed how the pair was setting up a potential head and shoulders pattern. By then, the right shoulder had not finished forming and I highlighted that it was a pair worth watching. Well, today the pattern is almost confirmed and we could see a massive roll-over.
As noted, the pattern will be confirmed when the market closes below the neckline on the daily chart. Below I highlight an conservative entry method. Take note, however, that the retest may not come and the market may just roll over without turning back. If that happens then traders waiting to trade the pullback may miss the trade.
Using multi-timeframe analysis we can see that the pair seems to be putting a retest on the hourly chart. If you want to learn about multi-timeframe analysis you can checkout this post I wrote.
It will be interesting to see price action over the next few hours. Whats your take? Share your thoughts below and you can follow me @taylortee. Dont forget to upvote as well, thanks!